List of Deductions & Investment for Tax Benefits
Would you like to explore a list of deductions for tax benefits? Here, we have provided a comprehensive list of allowable investments and deductions for income tax return filing purposes. Please check it out.
Get List of Deductions for Tax Benefit
Tax Benefit Deductions & Investments
Tax benefit investments are those investments that are allowable as deductions when filing a tax return. Additionally, certain expenses qualify for tax deductions. This means that when taxpayers pay, spend, or invest in such expenses or investments, they are not required to pay tax on the corresponding amount. Thus, Deductions are commonly known as Chapter VI Deduction as per The Income Tax Act. Lets check complete list of Deduction for Income Tax Return Filing.
List of Deductions and Investment (Tax Benefit of Income Tax Return)
Section 80C: Maximum allowable deduction of ₹1.5 lakhs per financial year. Deductions include:
- Life Insurance Premiums
- Public Provident Fund (PPF)
- Equity Linked Saving Schemes (ELSS)
- Employee Provident Fund (EPF)
- National Savings Certificate (NSC)
- Principal Repayment of Home Loan
- Tuition Fees for Children’s Education
- Many Others
Section 80CCC: Maximum allowable deduction of ₹1.5 lakhs per financial year. Deduction for premium paid for annuity plans of LIC or any other insurer.
Section 80CCD: Maximum allowable deduction of ₹1.5 lakhs per financial year. Deduction for contributions to the National Pension Scheme (NPS).
Section 80CCD(1B): Maximum allowable deduction of ₹50,000 per financial year. Additional deduction for contributions to NPS.
Section 80CCD(2): Employer’s contribution to the employee’s NPS account.
Section 80D: Maximum allowable deduction varies based on the age of the individual and type of insurance:
- Health insurance premiums for self, family, and parents: Up to ₹25,000 (₹50,000 for senior citizens)
- Preventive health check-up: Up to ₹5,000
Section 80DD: Maximum allowable deduction varies based on the disability:
- Disability below 40%: ₹75,000
- Disability 40% or more but less than 80%: ₹1.25 lakhs
- Disability 80% or more: ₹1.25 lakhs
Section 80DDB: Maximum allowable deduction varies based on age and actual expenses:
- Below 60 years: Actual expenses or ₹40,000, whichever is less
- 60 years or above: Actual expenses or ₹1 lakh, whichever is less
Section 80E: Maximum allowable deduction for interest on education loan without any limit.
Section 80EE: Maximum allowable deduction of ₹50,000 per financial year. Deduction on home loan interest for first-time homebuyers.
Section 80EEA: Maximum allowable deduction of ₹1.5 lakhs per financial year. Deduction on home loan interest for affordable housing.
Section 80EEB: Maximum allowable deduction of ₹1.5 lakhs per financial year. Deduction for purchase of electric vehicles.
Section 80G: Deduction for donations to certain funds, charitable institutions, etc. Maximum allowable deduction varies based on the recipient and mode of payment.
Section 80GG: Maximum allowable deduction of ₹5,000 per month or 25% of total income or rent paid minus 10% of total income, whichever is less. Deduction for rent paid by individuals not receiving House Rent Allowance (HRA).
Section 80GGA: Deduction for donations to scientific research or rural development. Maximum allowable deduction varies based on the recipient and mode of payment.
Section 80GGC: Deduction for donations to political parties. Maximum allowable deduction is without any limit.
Section 80IA, 80IB, 80IC, 80IE: Deductions for profits and gains from certain industrial undertakings, infrastructure development, and special economic zones. Maximum allowable deduction varies based on the type of undertaking and location.
Section 80JJA: Maximum allowable deduction of 100% of profits for profits and gains from collecting and processing of bio-degradable waste.
Section 80JJAA: Maximum allowable deduction for new employment is 30% of additional employee cost for 3 consecutive assessment years.
Section 80LA: Deduction from profits of offshore banking units and international financial services center. Maximum allowable deduction is without any limit.
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